Yes, I would be here on Twitter stating I didn't get a response back from Kraken if I it was about an alien story.
Let's make it simple, you know the Bloomberg article on your USDT/USD pair well, I asked questions on the data it used and on getting Kraken’s view on it.
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My views on that article in general are here: twitter.com/erjeetjeh/stat, also linked in the same email. You can see there and in replies, focusing on the data, not the line of the Bloomberg article.
Genuine, normal, relevant questions. No response. Want me to state them here?
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So today’s article by @mattleising on Tether and Kraken is really interesting. I love the data analysis approach. For me, the big question is the recurring numbers. Who is doing this and why? Who benefits?
bloomberg.com/graphics/2018-
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Were your questions answered in the blog post? If not, feel free to post here and I’ll see if I can answer. blog.kraken.com/post/1664/on-t
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Alright, thanks. They are not covered in the blog post, different focus than the Bloomberg article itself.
1. How come there are these reoccurring order sizes on the Kraken USDT/USD trading pair (Twitter screenshots below show 1000, Bloomberg article also shows many 75)?
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2. Why do these reoccurring orders alternate between buy and sell orders? I.e. the two screenshots are half an hour apart
3. Do these orders, and the alternating buy and sell orders, raise red flags to Kraken or not? Since you have all the monitoring data, what are we looking at?
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4. Who is behind these trades? Not asking to identify, but is this one trader (or entity) or a few (<10) or are we talking many?
5. How are these trades - in your view - beneficial for those executing them? Or how could they be?
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4. Can't say but it doesn't matter. 5. Making money arbing on other exchanges, or maybe market maker paid by Tether with volume reqs, or maybe they think they're going to get fee discounts for the volume, or maybe they're testing bots before launching on other markets.
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Thanks for answering. Re: 5, not sure how the alternating buys and sells can relate to arbitrage, it shouldn't be a pattern? Tether market maker/pursuing fee discount could be an explanation, but isn't that a form of creating ‘fake’ volume? There are USDT trading fees right?
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I don’t know where else they’re trading or what the strategy is. Maybe it’s just to drive the conspiracy theorists. Who knows? How do you define ‘fake’ volume and is there a problem with it? No fees after certain non-USDT volume reached.
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Not fake volume as how it is usually referenced to, as exchanges creating fake volume on their pair. I don't mean it that way. Just that it does seem to relate to creating volume. For what purpose? I don't know. Is there a problem with it? I don't know. It simply raise questions.
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All trades relate to creating volume. There are many unanswered questions: How is God's omniscience compatible with man's free will? Why did Ceasar cross the Rubicon? Who ate all the ice cream? Philosophers will similarly grapple with Tether for ages to come.